Pakistan revises net metering policy for solar consumers

The net metering policy for solar energy consumers in Pakistan has been revised, following consultations with key stakeholders, and has been approved by the Ministry of Energy, national media reported,citing sources.

According to sources, the existing net metering mechanism is being replaced with a net billing system. Under the revised framework, the duration of solar power purchase agreements with consumers has been set at five years.

Sources indicate that instead of additional surcharges previously applied under net metering, solar consumers will now receive a per-unit exchange rate.

The proposed net billing rate is expected to be around Rs12 per unit.

Under the new policy, consumers with a connected load of less than 25 kilowatts will be required to obtain a licence from the National Electric Power Regulatory Authority (NEPRA). Previously, domestic, industrial, and commercial consumers with loads up to 25 kilowatts were exempt from licensing requirements.

Officials said the Ministry of Energy, in coordination with distribution companies (DISCOs) and NEPRA, completed the procedure after several months of consultations.

The ministry has also informed the federal government that continuation without a revised policy was not feasible.

Energy ministry officials clarified that the determination of solar tariffs will remain the responsibility of NEPRA regulators.